Forex trading - advantages are also a huge downside

Forex trading - advantages are also a huge downside

I read a lot about the advantages of forex trading, but these advantages mean nothing if it can be marketed properly, will be one of the 90% of traders lose their capital quickly.

Many articles focus only on the advantages (written mostly by people who have never traded in their lives) Here, too, will look at the shortcomings and how to avoid losing your capital and entry of minorities to the winners.

Here are two key advantages that most traders can deal in forex trading.

1st Advantage

This is one feature that makes forex trading so appealing trading more money than you have in your account.

It is of course a double edged sword and creates risk.

Most retailers in forex trading, because they over leverage their positions

2nd Volatility

Creates a high risk and high rewards.

When you trade on leverage have a problem to enter the right time, keeping the trend and knows when to stop out.

This is not as simple as it seems.

Most traders can spot a trend, but they can not hold.

Why?

Because they can not get the best risk reward and place their stops at the wrong place.

How often do you get the trend right retailers to stop off at a loss, then see a bunch of Commerce 10,000 or more, it happens often.

3rd Trending nature

Currencies trend longer term and it is a fact - These trends take months or years.

Most traders however ignore this fact and short-term trading or day trading (where they are destined to lose) and we discussed this in several articles.

They also can not maintain profits.

The greater profit is more willing to take it before it gets away.

The logic is that you can break taking a profit, but you can.

You should run profits to cover your inevitable loses if they do not make your capital account will soon disappear.

So how about some positive advice?

Here are some points that need to learn when forex trading:

1st Preference to deal with what needs to enter and exit the optimum risk reward.

2nd You should ignore short-term noise and focus on long term trends, to cover your inevitable losses.

3rd You risk to get. Placing and trailing stops to close means that you will never make money instability will prevent the outside.

4th You must accept the dips in open equity and have the courage to run trend for all it's worth.

5th Forex trading is competitive and you need a method that gives you the advantage. If you do not know what your edge is you do not have one!

The advantages of forex trading are huge disadvantages to, people who simply think they can open the newspaper and the so-called top guru and make money, you lose the pure and simple.

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